On the road to a Great Statement - Canada Post · On the road to a Great Statement A Case Study ... Marketing Manager, 407 ETR ... Create a plan to incorporate this

On the road to a Great Statement A Case Study

407 ETR’s redesigned account statement has reduced account management costs by 38% and overall call volume by 15%.

407 ETR is the world’s fi rst all-electronic, barrier-free toll highway, stretching 108 kilometres across

the top of Toronto and accommodating an average of 400,000 customer trips each workday.

407 ETR has established a reputation for being a fast, safe and reliable transportation route,

and for delivering a superior customer experience. This commitment to customer service has

led it to redesign its customer account statements, resulting in higher brand awareness,

increased customer loyalty and usage, and reduced costs.

At a glance

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Statement redesign fuels customer satisfaction and puts the brakes on administrative costs 407 ETR (Express Toll Route) has been something of a pioneer since its inception. The world’s fi rst automated toll road, 407 ETR stretches 108 kilometres across the top of Toronto, and maintains a sophisticated network of cameras, computers and scanners to track where and when vehicles enter and exit. Under the terms of agreements with Canadian provinces and some American states, 407 ETR can obtain information associated with the licence plates of vehicles that travel on the toll road. The information enables 407 ETR to identify vehicle owners and generate invoices based on distance travelled and time of day.

From the outset, the popularity of 407 ETR exceeded expectations. Since it opened in 1997, 407 ETR has undergone several expansions and extensions. It now accommodates an average of 400,000 trips each workday. Although this popularity has been good news for the company, it has also created a few challenges.

Because there are no on-site toll booths, all of 407 ETR’s revenues are derived from invoices sent to its users. As such, the company’s ability to identify, track and bill its customers and receive timely payment is crucial to its success. Creating and managing millions of customer accounts and sending out accurate monthly statements requires sophisticated software and signifi cant effort.

Mapping out the customer statement407 ETR has four billing structures: company fl eets; monthly invoiced customers with transponders (the devices that signal scanners as vehicles enter and leave the highway); repeat customers without transponders; and fi rst-time customers. Designing an account statement that can accommodate all customers has been an ongoing challenge for 407 ETR.

“From the beginning, we recognized the importance of communicating clearly with our customers,” says Steve Spencer, 407 ETR’s Marketing Manager. “And we knew that the account statement would be an effective way to reach them. At the same time, we were forced to break new ground — no one

had ever created an account statement for an automated toll road. Despite our best research and design efforts, our fi rst generation of account statements didn’t quite hit the mark.”

Large numbers of customers phoned 407 ETR’s call centre asking for assistance with their account statements. Many customers asked unexpected questions about their accounts such as the total distance travelled on each trip. The company quickly recognized that including this information on account statements could alleviate pressure on its call centre.

A second factor also drove the statement-redesign effort. Initially, the company created a unique account and sent out a separate monthly statement for each vehicle, unless it was part of a commercial fl eet. Many customers with multiple vehicles, though, preferred to receive consolidated monthly statements listing the trips taken by all of their vehicles. The company appreciated that this approach would reduce administrative costs and began to offer consolidated statements.

Statement reconstruction speeds fl ow of informationConstruction teamTo address these concerns, 407 ETR launched a statement-redesign project that involved several teams within the company, including the Communications and Customer Service departments. 407 ETR then hired Simplifi ed Communications, an information design fi rm, to add their statement design expertise to the project.

ImprovementsGiven that customers had responded positively to the look and feel of the original statement, many elements were retained such as the logo placement and the address bar. However, the new statement includes much more information, and features a clean, simple layout.

In response to customers’ requests for more detailed information, 407 ETR amended the “Trip Details” section to include the customer’s total distance travelled. This enables customers to identify the number of kilometres travelled on each trip.

To make it easier for customers to remit payments, 407 ETR moved the tear-away remittance form to the bottom of the fi rst

Company407 ETR (Express Toll Route)

IndustryPrivate toll road — world’s fi rst all-electronic, barrier-free toll highway

ChallengeTransform the company’s account statements into effective communications tools that satisfy its customers’ need for relevant, easy-to-understand information.

Solution407 ETR’s redesigned statements present a wealth of valuable information in customer-friendly language. The statement has reduced costs and calls to the call centre, and increased loyalty and usage.

Benefi ts• Increased customer satisfaction

and engagement• Increased customer loyalty• Fewer calls to Customer Service • Reduced administrative costs• Increased revenue• Logical and cost-effective means

of communicating customer loyalty reward program

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page. The mailing address for bill payment is strategically placed on the fl ip side of the page, which facilitates mailing.

To better serve customers, page two now includes a map that illustrates the distance between major interchanges, and a list of toll charges that explains the differences between peak and off-peak rates. This page also describes payment options and provides information about how to access customer service by phone, by mail, by fax and in person.

Redesigned statement puts 407 ETR in the fast laneThe redesign project has been an overwhelming success. 407 ETR’s new statement has helped reduce call centre volumes and administrative costs, and has strengthened customer relationships.

Reduced call centre congestionThe new statement has reduced overall call centre volumes by 15%, as it is much easier for customers to fi nd the information they want when they want it. Industry data notes that it can cost a company up to $16 to fi eld a single customer service agent call1. Lower call centre volumes translate into substantial savings.

Reduced costs through encouraging speedy pre-authorized paymentThe new statement includes messages promoting transponders and pre-authorized payment options. These messages have also helped to signifi cantly reduce calls to the call centre.

“The number of customers who use transponders and register for pre-authorized payment has increased substantially since statement redesign,” says Spencer.

“The new statement has also reduced the number of calls we receive, particularly from infrequent users.”

Customer loyalty program drives improved customer relationsThe new statement encourages customers to take advantage of the 407 ETR Rewards program, which thanks customers for their business with free weekend kilometres and savings on gas. Customers receive a customized statement that refl ects their reward status.

“There’s no doubt that the new statement has led to increased customer satisfaction and loyalty, and helped us build the 407 ETR brand.”

Steve SpencerMarketing Manager, 407 ETR

Great statements the key to improved customer loyaltyThe benefi ts that 407 ETR now enjoys as a result of its statement redesign is evidence of how companies can extend the value of an existing delivery medium — the customer statement — to build brand awareness, cement customer loyalty, increase revenues and reduce costs.

Canada Post offers value-added services that can maximize the value of your communications.

For more information on how you can make a Great Statement work for your business, visit www.canadapost.ca/greatstatements, email [email protected] or contact your account executive.

1InfoTrends presentation by Barb Pellow at 2007 On Demand Conference in Boston, Massachusetts

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Note: this is a sample statement for illustration purposes only

About Canada PostCanada Post is committed to helping Canadian organizations more effectively communicate with their customers. We believe that strong transactional documents can be a valuable part of an organization’s integrated marketing mix.

Canada Post is pleased to provide the tools and resources our customers need to get the most out of their transactional documents. Learn more by visiting www.canadapost.ca/greatstatements.

How to make a Great Statement

© Canada Post Corporation, 2007

In the increasingly competitive business landscape, companies continue to look for innovative ways to grab and hold their customers’ attention, and gain a competitive advantage. And yet, every month, many companies overlook a valuable communications channel to the customers: customer statements.

TransPromo Marketing is the use of attractive, customer-centric transactional documents to deliver relevant promotional messages. Customer statements that employ the principles of TransPromo Marketing can increase revenues, decrease overhead costs, improve the customer experience, and enhance brand awareness and loyalty. The most effective statements can even become the cornerstone of an organization’s brand strategy and marketing mix. All in all, a Great Statement, delivered directly to households and businesses, just makes good business sense.

To transform your customer statements into powerful marketing and communications tools:

Statement assessment1. Identify the statements you currently have,

and how often they go out. Compare them to other forms of communication the customer may receive containing your brand. Are your statements consistent with these other communications — in terms of tone, product and service offerings, look and feel, and branding?

2. Measure your existing documents against quantitative criteria of statement quality. See how your statements rate by going through the Take the Test exercise at Take the Test exercise at Take the Testwww.canadapost.ca/greatstatements.

Planning for more effective communications3. Identify the customer knowledge (CRM

data) that can be incorporated into these statements such as purchase history, demographics and usage patterns.

4. Create a plan to incorporate this information into your statements. Make sure the information is accurate, relevant, targeted and respectful.

5. Contact a specialist statement design fi rm to assist with the redesign project.

6. Evaluate the redesigned statements by reapplying the Take the Test criteria. If Take the Test criteria. If Take the Testthe statement passes the test, proceed to implementation.

Implement, assess and improve7. Establish methodology and metrics against

which to measure the success of the new statements, and the incremental benefi ts incurred as a result of this new approach. Examples could include reduced call volume to call centres, additional revenue generated by cross-sell or upsell promotions on statements, and reduced billing and payment cycles.

8. Execute and track.9. Review and improve.

Documents

On the road to a Great Statement - Canada Post · On the road to a Great Statement A Case Study ... Marketing Manager, 407 ETR ... Create a plan to incorporate this